Ford Slashed the Mach-E's Price Tag and Saw an Immediate Uptick in Sales
Disappointing EV demand can be blamed on several factors, ranging from the toxic political situation in the U.S. to concerns about driving range and charging. One factor that is coming into clear focus is pricing, as Ford recently found out with the Mustang Mach-E. In response to flagging demand, the automaker cut prices on the electric SUV and has seen an uptick in sales as a result, showing that cost remains a significant hurdle for many prospective buyers.
Ford knocked several thousand dollars off the Mach-E’s price earlier this year and has offered aggressive financing deals with interest rates as low as zero percent. Analysts told Automotive News that Ford has seen Mach-E sales triple since the changes, bringing its significant dealer inventory down by nine percent.
Now that we’re past the wave of enthusiastic early adopters, price is a growing concern for buyers. Mainstream car shoppers aren’t as willing to shell out a significant premium for an EV when comparable gas, hybrid, and PHEV models are less expensive. EV cost will remain a hurdle until automakers can crack the profitability nut that has so far eluded all of them.
Ford aims to address the problem with its internal skunkworks team’s project to develop a more affordable EV, but there’s no word on when the effort will deliver a new vehicle. Tesla may reach the destination first, but it faces significant manufacturing challenges to bring the price down to the promised $25,000 range. That said, automakers lose an average of $6,000 on every new EV sold at higher price points, so it remains to be seen how sustainable more affordable models will be, even if demand and volume reach record highs.
[Image: Ford]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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I suppose I'm the only one, but I would kill for this car, if I could have it with a five-liter V8 and a manual tranny!
The cited article's title:
Ford Mustang Mach-E Sales Soar After Discounts, Proving Cheap EVs Are the Way Forward
Inside the article:
"The full results aren't in, as Ford's Q1 sales aren't published yet, but early signs point to the discounts having a big effect."
Next we'll hear about how Mach-E sales are up -9% and how there are no American troops in Baghdad. Maybe Steiner will finally attack too?
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Btw: the secret sauce of "success" was to offer 0% financing if one is ordered before April 2 and to reduce the base model a whopping $900 while also dropping the high trim GT nearly $6K (which still starts at $55K). Interestingly, Dearborn is quoting a wait time of 18-22 weeks which suggests to me production has/had been idled or European exports will have/have dropped off.